There are actually two types of credit cards that are available for people who are planning to apply for a credit card and having bad credit. These are the secured and subprime cards. If you ever have bad credit, you will find it difficult in rebuilding your credit. 

The secret towards improving your credit history as well as raising your credit score is in opening new accounts and in managing it responsibly. Also, people having bad credit usually don't get approved in applying for credit cards.  

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Secured Credit Cards

Secured credit cards work exactly just like other credit cards. However this will need you to submit a refundable security deposit before you can actually open an account. 

In most secured cards, the credit limit that you get is equal on the amount of your security deposit. However, after you have opened an account, the secured card is going to work like other credit cards. If you will use the card, nobody will be able to realize that it's a secured card. 

When you do an on-time payment in a year, a lot of secured card users will find that their credit improved enough to be able to qualify on a standard and unsecured card. If you will change your secured card with an unsecured card or perhaps paying off the balance and closing the account, you will then get a refund on the security deposit. 

Such cards also have low fees and give you various benefits for the entry-level credit cards meant for people who are new to credit. 

Subprime Credit Cards

Subprime credit cards are known to as unsecured cards which is designed specifically in meeting the needs of those who have bad credit. Because there's no deposit necessary, credit card issuers tend to impose a substantial credit card fee for its increased risk in extending credit towards any customer having bad credit.  

Through a subprime card, you could expect its interest rates to be higher compared to other credit cards and that customers will usually get a small line of credit. These cards also offer few travel insurance and purchase protection policies that are usually present in most credit cards. 

When you have bad credit and you wish to apply for a credit card, you should consider understanding your options first. The advantage of a subprime credit card is that there's no need for you to submit a refundable security deposit. 

Another thing is that most of such cards will need a large payment and non-refundable fees before you could open an account, but it is able to offer customers modest line of credit. Most subprime cards will also subtract the amount of such fees billed from their customer's line of credit, which usually leaves little spending power available before such fees are paid.